Biggest Obstacle in Billing & Invoice Payment Process and How to Overcome Them
One of the biggest challenges for Principals and Distributors is to process invoices efficiently in order to maintain a consistent cash flow.
Principal is responsible for handling invoices that are billed to the distributor, while the distributor is responsible for paying invoices to the principal and also filing invoices to stores/retailers.
Obstacles In Invoicing
1. Piles of Paper Scattered Throughout the Departments
Invoice papers must be received and then scanned or inputted into the system before being verified. Not to mention if the documents can come from multiple sources (stores, vendors, etc.). Then company employees have to centralize these documents for further processing. The task of entering data, approving, and paying for this not only consumes a lot of resources but is very prone to human error if the process is still done manually.
2. Late Customer Billing
Errors in billing such as lost data, lack of data, changes in price or quantity that may occur during the ordering process but have not been entered into the system can cause your employees to go back and forth to clients. These delayed payments can cause clashes into the next billing cycle. Slowly but surely, this slow collection rate will ultimately affect the company’s cash flow.
3. Damaging Customer Satisfaction
Delayed payments can result in late delivery of goods or buyer credit limits update. The relationship with the buyer can also go bad if payment problems occur frequently.
4. More Employees Are Needed
Manual processing demands a lot of resources and has a high potential for human error that will ultimately require companies to hire more employees, in hopes of reducing processing time. If the company employs more employees, hence, higher labor costs.
With a management system like Advotics, invoice processing can be done online and is integrated into all company devices. So that the process can be done more quickly and accurately.
Invoice Module at DMS Advotics
The module can be used to manage invoices or bills addressed to distributors or shops. The module can facilitate companies to track and record every transaction and payment automatically.
Advotics web portal can send notifications to make it easier for supervisors to manage bills. Such as when the bill has been paid (for payment via web), unpaid deadline reminder, and also overdue information for bills that exceed the payment deadline.
If the company uses the sales order module in DMS, then every order request that is entered into the system (after approval) will automatically be generated an invoice for the order.
Advotics system also provides partial payment options (paid regularly). The company can easily add a note to the payment when the buyer makes a partial payment, the system will then display the remaining invoice amount to be paid.